- Full-year comparable store sales increase of
4.6%
- Annual adjusted operating margin improves 133 bps to
14.9%
- Full-year adjusted diluted EPS increased 25% to
$3.81
- 134% increase in full-year free cash flow to $791
million
O'Reilly Automotive, Inc. (the "Company" or
"O'Reilly") (Nasdaq:ORLY), a leading retailer in the
automotive aftermarket industry, today announced record revenues
and earnings for its fourth quarter and year ended December 31,
2011. The results represent 19 consecutive years of comparable
store sales growth and record revenue and operating income for
O'Reilly since becoming a public company in April of 1993.
4th Quarter Financial Results
Sales for the fourth quarter ended December 31, 2011, increased
$81 million, or 6%, to $1.39 billion from $1.31 billion for the
same period one year ago. Gross profit for the fourth quarter
increased to $695 million (or 49.9% of sales) from $637 million (or
48.6% of sales) for the same period one year ago, representing an
increase of 9%. Selling, general and administrative expenses
("SG&A") for the fourth quarter increased to $491 million (or
35.3% of sales) from $472 million (or 36.1% of sales) for the same
period one year ago, representing an increase of 4%. Operating
income for the fourth quarter increased to $207 million (or 14.9%
of sales) from $164 million (or 12.5% of sales) for the same period
one year ago, representing an increase of 26%.
Net income for the fourth quarter ended December 31, 2011,
increased $17 million, or 16%, to $123 million (or 8.8% of sales)
from $106 million (or 8.1% of sales) for the same period one year
ago. Diluted earnings per common share for the fourth quarter
increased 27% to $0.94 on 130 million shares versus $0.74 for the
same period one year ago on 143 million shares.
The Company's results for the fourth quarter ended December 31,
2011, included nonrecurring income related to a settlement between
the Securities and Exchange Commission and a former CSK Auto
Corporation ("CSK") officer that resulted in the reimbursement to
CSK of $3 million ($2 million, net of tax) of incentive-based
compensation and stock sale profits previously received by the
officer. This "clawback" amount was included in "Operating income"
on the Company's Consolidated Statements of Income for the fourth
quarter ended December 31, 2011. As previously announced, the
Company's results for the fourth quarter ended December 31, 2010,
included a nonrecurring, non-operating gain of $12 million ($7
million, net of tax) related to the settlement of a note receivable
acquired in the acquisition of CSK. The note was favorably settled
for a gain in the fourth quarter of 2010. The gain related to the
settlement of this note receivable was included in "Other income
(expense)" on the Company's Consolidated Statements of Income for
the fourth quarter ended December 31, 2010. The results discussed
in the paragraph below are adjusted for these nonrecurring items
for the fourth quarters ended December 31, 2011 and 2010, and are
reconciled in the table accompanying this release.
Adjusted operating income for the fourth quarter ended December
31, 2011, increased 24% to $204 million (or 14.7% of sales) from
$164 million (or 12.5% of sales) for the same period one year ago.
Adjusted net income for the fourth quarter ended December 31, 2011,
increased 23%, to $121 million (or 8.7% of sales) from $99 million
(or 7.5% of sales) for the same period one year ago. Adjusted
diluted earnings per common share, for the fourth quarter ended
December 31, 2011, increased 35% to $0.93 from $0.69 for the same
period one year ago.
"We are pleased to report another quarter of solid financial
results," stated Greg Henslee, CEO and Co-President of the Company.
"As a result of our continued efforts to profitably grow sales,
along with our culture of strict expense control, we generated a
fourth quarter increase in comparable store sales of 3.3% while
also increasing our adjusted operating margin to 14.7%, a 214
basis-point improvement over the fourth quarter last year. For the
year, we generated a comparable store sales increase of 4.6%, and
we expect to continue these strong results in 2012 with comparable
store sales guidance of 3% to 6%. For the full year, we generated a
record 14.9% adjusted operating margin, and we expect to achieve an
operating margin of 15% in 2012, a year earlier than our 2013 goal.
Our continued success is the direct result of our Team Members'
commitment to providing the highest level of service to our
customers every day. I want to thank Team O'Reilly for your
dedication and hard work and congratulate you on another great
year."
Full-Year Financial Results
Sales for the year ended December 31, 2011, increased $391
million, or 7%, to $5.79 billion from $5.40 billion for the same
period one year ago. Gross profit for the year ended December 31,
2011, increased to $2.84 billion (or 49.0% of sales) from $2.62
billion (or 48.6% of sales) for the same period one year ago,
representing an increase of 8%. SG&A for the year ended
December 31, 2011, increased to $1.97 billion (or 34.1% of sales)
from $1.89 billion (or 35.0% of sales) for the same period one year
ago, representing an increase of 5%. Operating income for the year
ended December 31, 2011, increased to $867 million (or 15.0% of
sales) from $713 million (or 13.2% of sales) for the same period
one year ago, representing an increase of 22%.
Net income for the year ended December 31, 2011, increased $88
million, or 21%, to $508 million (or 8.8% of sales) from $419
million (or 7.8% of sales) for the same period one year ago.
Diluted earnings per common share for the year ended December 31,
2011, increased 26% to $3.71 on 137 million shares versus $2.95 for
the same period one year ago on 142 million shares.
The Company's results for the year ended December 31, 2011,
included one-time charges associated with the new financing
transactions the Company completed in January of 2011, as well as
the former CSK officer clawback discussed above. The one-time
charges associated with the new financing transactions included a
non-cash charge to write off the balance of debt issuance costs
related to the Company's previous credit facility in the amount of
$22 million ($13 million, net of tax) and a charge related to the
termination of the Company's interest rate swap agreements in the
amount of $4 million ($3 million, net of tax). The charges related
to the Company's new financing transactions were included in "Other
income (expense)" on the Company's Consolidated Statements of
Income for the year ended December 31, 2011. The former CSK officer
clawback, discussed above, was included in "Operating income" on
the Company's Consolidated Statements of Income for the year ended
December 31, 2011. As previously announced, the Company's results
for the year ended December 31, 2010, included a charge related to
the legacy United States Department of Justice ("DOJ")
investigation of CSK into CSK's pre-acquisition historical
accounting practices, as well as the gain related to the settlement
of a note receivable acquired in the CSK acquisition discussed
above. The Company accrued $21 million during 2010 in anticipation
of executing a Non-Prosecution Agreement ("NPA") among the DOJ, CSK
and O'Reilly and paying a one-time monetary penalty of $21 million.
During the third quarter of 2011, the NPA was executed and the
previously recorded, one-time $21 million penalty was paid to the
DOJ on behalf of CSK. The charge related to the legacy CSK DOJ
investigation was included in "Operating income" on the Company's
Consolidated Statements of Income for the year ended December 31,
2010. The gain related to the settlement of the note receivable,
discussed above, was included in "Other income (expense)" on the
Company's Consolidated Statements of Income for the year ended
December 31, 2010. The results discussed in the paragraph below are
adjusted for these nonrecurring items for the years ended December
31, 2011 and 2010, and are reconciled in the table accompanying
this release.
Adjusted operating income for the year ended December 31, 2011,
increased 18% to $864 million (or 14.9% of sales) from $734 million
(or 13.6% of sales) for the same period one year ago. Adjusted net
income for the year ended December 31, 2011, increased 21% to $522
million (or 9.0% of sales) from $433 million (or 8.0% of sales) for
the same period one year ago. Adjusted diluted earnings per common
share for the year ended December 31, 2011, increased 25% to $3.81
from $3.05 for the same period one year ago.
Commenting on O'Reilly's full-year results, Mr. Henslee added,
"We are very proud of the success we achieved in decreasing our net
inventory investment by over $420 million for the year. This
working capital improvement, along with lower capital expenditures
during the year, generated $791 million in free cash flow. During
the year, we generated significant shareholder value through our
share buyback program by repurchasing over 15 million of our shares
for a total investment of almost $1 billion, and we expect to
continue to prudently execute our buyback program during 2012. I
would like to again thank all of Team O'Reilly for their continued
contribution to our Company's successes, and we look forward to the
opportunities 2012 will bring."
Ted Wise, COO and Co-President stated, "During 2011, we expanded
into our 39th state, completed the acquired CSK store interior
resets to the O'Reilly format, converted the CSK exterior signs to
the O'Reilly Brand and opened 170 net, new stores, which increased
our store count to 3,740. Our outlook for 2012 includes the
continued expansion of our store base with the opening of 180 new
stores along with the relocation or renovation of nearly 50
existing stores. We continue to open stores in both existing
and new markets and have maintained our focus on rapidly growing
professional service provider business in the western
states. Our Team Members' commitment to superior service
levels was the foundation for our 4.6% comparable store sales
increase during 2011, which was on top of an extremely strong
comparable store sales increase of 8.8% last year, and we look to
continue this solid growth in 2012."
Share Repurchase Program
On January 11, 2011, the Company's Board of Directors authorized
a $500 million share repurchase program. The Company's Board
of Directors approved resolutions to increase the authorization
under the share repurchase program by an additional $500 million on
August 5, 2011, and an additional $500 million on November 16,
2011, raising the cumulative authorization under the share
repurchase program to $1.5 billion. During the fourth quarter
ended December 31, 2011, the Company repurchased 1.8 million shares
of its common stock at an average price per share of $75.60, for a
total investment of $136 million. During the year ended
December 31, 2011, the Company repurchased 15.9 million shares of
its common stock at an average price per share of $61.49, for a
total investment of $976 million. Subsequent to the end of the
fourth quarter and through the date of this release, the Company
repurchased an additional 0.1 million shares of its common stock at
an average price per share of $79.45, for a total investment of $10
million. As of the date of this release, the Company had
approximately $514 million remaining under its share repurchase
program.
4thQuarter and Full-Year Comparable Store Sales
Results
Comparable store sales are calculated based on the change in
sales for stores open at least one year and exclude sales of
specialty machinery, sales to independent parts stores and sales to
team members. Comparable store sales increased 3.3% for the
fourth quarter ended December 31, 2011, versus 9.2% for the same
period one year ago. Comparable store sales increased 4.6% for
the year ended December 31, 2011, versus 8.8% for the same period
one year ago.
1st Quarter and Full-Year 2012 Guidance
The table below outlines the Company's guidance for selected
first quarter and full-year 2012 financial data:
|
|
|
|
|
|
|
Three Months
Ending |
Year Ending |
|
March 31, 2012 |
December 31,
2012 |
New store openings |
|
180 |
Comparable store sales |
4% to 6% |
3% to 6% |
Total revenue |
|
$6.15 billion to $6.25 billion |
Gross profit margin |
|
48.9% to 49.3% |
Operating margin |
|
15.0% to 15.5% |
Diluted earnings per share (1) |
$0.99 to $1.03 |
$4.27 to $4.37 |
Capital expenditures |
|
$315 million to $345 million |
Free cash flow (2) |
|
$600 million to $650 million |
(1) Weighted-average shares
outstanding, assuming dilution, used in the denominator of this
calculation, includes share repurchases made by the Company through
the date of this release. |
(2) Calculated as net cash flows
provided by operating activities less capital expenditures for the
period. |
|
|
|
Non-GAAP Information
This release contains certain financial information not derived
in accordance with United States generally accepted accounting
principles ("GAAP"). These items include adjusted operating
income, adjusted net income, adjusted diluted earnings per common
share, free cash flow, and rent-adjusted debt to adjusted earnings
before interest, taxes, depreciation, amortization, stock option
compensation and rent ("EBITDAR"). The Company does not, nor
does it suggest investors should, consider such non-GAAP financial
measures in isolation from, or as a substitute for, GAAP financial
information. The Company believes that the presentation of
financial results and estimates excluding the impact of the
non-cash charge to write off the balance of debt issuance costs,
the charge related to the termination of interest rate swap
agreements, the former CSK officer clawback, the charges related to
the legacy CSK DOJ investigation, the nonrecurring, non-operating
gain related to the settlement of a note receivable acquired in the
acquisition of CSK, as well as the presentation of adjusted debt to
adjusted EBITDAR and free cash flow, provide meaningful
supplemental information to both management and investors that is
indicative of the Company's core operations. The Company
excludes these items in judging its performance and believes this
non-GAAP information is useful to investors as well. The
Company has included a reconciliation of this additional
information to the most comparable GAAP measure in the accompanying
reconciliation table.
Earnings Conference Call Information
The Company will host a conference call on Thursday, February 9,
2012, at 10:00 a.m. central time to discuss its results as well as
future expectations. Investors may listen to the conference
call live on the Company's website at www.oreillyauto.com by
clicking on "Investor Relations" and then "News
Room". Interested analysts are invited to join our
call. The dial-in number for the call is (706) 679-5789; the
conference call identification number is 40239387. A replay of
the call will be available on the Company's website following the
conference call.
About O'Reilly Automotive, Inc.
O'Reilly Automotive, Inc. is one of the largest specialty
retailers of automotive aftermarket parts, tools, supplies,
equipment and accessories in the United States, serving both the
do-it-yourself and professional service provider
markets. Founded in 1957 by the O'Reilly family, the Company
operated 3,740 stores in 39 states as of December 31, 2011.
The O'Reilly Automotive, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5430
Forward-Looking Statements
The Company claims the protection of the safe-harbor for
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify
these statements by forward-looking words such as "expect,"
"believe," "anticipate," "should," "plan," "intend," "estimate,"
"project," "will" or similar words. In addition, statements
contained within this press release that are not historical facts
are forward-looking statements, such as statements discussing among
other things, expected growth, store development, integration and
expansion strategy, business strategies, future revenues and future
performance. These forward-looking statements are based on
estimates, projections, beliefs and assumptions and are not
guarantees of future events and results. Such statements are
subject to risks, uncertainties and assumptions, including, but not
limited to, competition, product demand, the market for auto parts,
the economy in general, inflation, consumer debt levels,
governmental regulations, the Company's increased debt levels,
credit ratings on the Company's public debt, the Company's ability
to hire and retain qualified employees, risks associated with the
performance of acquired businesses such as CSK, weather, terrorist
activities, war and the threat of war. Actual results may
materially differ from anticipated results described or implied in
these forward-looking statements. Please refer to the "Risk
Factors" section of the annual report on Form 10-K for the year
ended December 31, 2010, for additional factors that could
materially affect the Company's financial
performance. The Company undertakes no obligation
to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
|
|
|
|
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share
data) |
|
December 31,
2011 |
December 31, 2010 |
|
(Unaudited) |
(Note) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 361,552 |
$ 29,721 |
Accounts receivable, net |
135,149 |
121,807 |
Amounts receivable from vendors |
68,604 |
61,845 |
Inventory |
1,985,748 |
2,023,488 |
Deferred income taxes |
-- |
33,877 |
Other current assets |
56,557 |
30,514 |
Total current assets |
2,607,610 |
2,301,252 |
|
|
|
Property and equipment, at cost |
3,026,996 |
2,705,434 |
Less: accumulated depreciation and
amortization |
933,229 |
775,339 |
Net property and equipment |
2,093,767 |
1,930,095 |
|
|
|
Notes receivable, less current portion |
10,889 |
18,047 |
Goodwill |
743,907 |
743,975 |
Other assets, net |
44,328 |
54,458 |
Total assets |
$ 5,500,501 |
$ 5,047,827 |
|
|
|
Liabilities and shareholders'
equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 1,279,294 |
$ 895,736 |
Self-insurance reserves |
53,155 |
51,192 |
Accrued payroll |
52,465 |
52,725 |
Accrued benefits and withholdings |
41,512 |
45,542 |
Deferred income taxes |
1,990 |
-- |
Income taxes payable |
-- |
4,827 |
Other current liabilities |
150,932 |
177,505 |
Current portion of long-term debt |
662 |
1,431 |
Total current liabilities |
1,580,010 |
1,228,958 |
|
|
|
Long-term debt, less current portion |
796,912 |
357,273 |
Deferred income taxes |
88,864 |
68,736 |
Other liabilities |
189,864 |
183,175 |
|
|
|
Shareholders' equity: |
|
|
Common stock, $0.01 par value: |
|
|
Authorized shares – 245,000,000 Issued
and outstanding shares – 127,179,792 as of December 31, 2011,
141,025,544 as of December 31, 2010 |
1,272 |
1,410 |
Additional paid-in capital |
1,110,105 |
1,141,749 |
Retained earnings |
1,733,474 |
2,069,496 |
Accumulated other comprehensive loss |
-- |
(2,970) |
Total shareholders' equity |
2,844,851 |
3,209,685 |
Total liabilities and shareholders'
equity |
$ 5,500,501 |
$ 5,047,827 |
Note: The balance sheet at
December 31, 2010, has been derived from the audited consolidated
financial statements at that date, but does not include all of the
information and footnotes required by accounting principles
generally accepted in the United States for complete financial
statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands, except per
share data) |
|
|
|
|
|
|
For the Three Months
Ended |
For the Year
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Note) |
Sales |
$ 1,391,307 |
$ 1,310,330 |
$ 5,788,816 |
$ 5,397,525 |
Cost of goods sold, including warehouse and
distribution expenses |
696,610 |
673,733 |
2,951,467 |
2,776,533 |
Gross profit |
694,697 |
636,597 |
2,837,349 |
2,620,992 |
Selling, general and administrative
expenses |
490,584 |
472,461 |
1,973,381 |
1,887,316 |
Former CSK officer clawback |
(2,798) |
-- |
(2,798) |
-- |
Legacy CSK DOJ investigation charge |
-- |
-- |
-- |
20,900 |
Operating income |
206,911 |
164,136 |
866,766 |
712,776 |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Interest expense |
(9,459) |
(7,492) |
(28,165) |
(39,273) |
Interest income |
625 |
532 |
2,245 |
1,941 |
Write-off of asset-based revolving credit
facility debt issuance costs |
-- |
-- |
(21,626) |
-- |
Termination of interest rate swap
agreements |
-- |
-- |
(4,237) |
-- |
Gain on settlement of note
receivable |
-- |
11,639 |
-- |
11,639 |
Other, net |
(489) |
445 |
790 |
2,290 |
Total other income (expense) |
(9,323) |
5,124 |
(50,993) |
(23,403) |
Income before income taxes |
197,588 |
169,260 |
815,773 |
689,373 |
Provision for income taxes |
74,600 |
63,500 |
308,100 |
270,000 |
Net income |
$ 122,988 |
$ 105,760 |
$ 507,673 |
$ 419,373 |
|
|
|
|
|
Earnings per share-basic: |
|
|
|
|
Earnings per share |
$ 0.96 |
$ 0.76 |
$ 3.77 |
$ 3.02 |
Weighted-average common shares outstanding –
basic |
128,087 |
139,850 |
134,667 |
138,654 |
|
|
|
|
|
Earnings per share-assuming dilution: |
|
|
|
|
Earnings per share |
$ 0.94 |
$ 0.74 |
$ 3.71 |
$ 2.95 |
Weighted-average common shares outstanding –
assuming dilution |
130,405 |
143,203 |
136,983 |
141,992 |
|
|
|
|
|
Note: The income statement
for the year ended December 31, 2010, has been derived from the
audited consolidated financial statements at that date, but does
not include all of the information and footnotes required by
accounting principles generally accepted in the United States for
complete financial statements. |
|
|
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(In thousands) |
|
|
|
|
For the Year
Ended |
|
December
31, |
|
2011 |
2010 |
|
(Unaudited) |
(Note) |
Operating activities: |
|
|
Net income |
$ 507,673 |
$ 419,373 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
Depreciation and amortization of
property, equipment and intangibles |
165,880 |
161,442 |
Amortization of debt discount, premium
and issuance costs |
1,797 |
7,852 |
Write-off of asset-based revolving credit
facility debt issuance costs |
21,626 |
-- |
Excess tax benefit from stock options
exercised |
(22,985) |
(18,587) |
Deferred income taxes |
54,120 |
99,257 |
Gain on settlement of note
receivable |
-- |
(11,639) |
Share-based compensation programs |
20,579 |
16,973 |
Other |
8,292 |
6,893 |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
(21,219) |
(21,748) |
Inventory |
37,740 |
(110,271) |
Accounts payable |
383,632 |
82,574 |
Income taxes payable |
(8,625) |
15,346 |
Other |
(29,519) |
56,222 |
Net cash provided by operating
activities |
1,118,991 |
703,687 |
|
|
|
Investing activities: |
|
|
Purchases of property and equipment |
(328,319) |
(365,419) |
Proceeds from sale of property and
equipment |
2,715 |
2,124 |
Payments received on notes receivable |
5,435 |
17,364 |
Other |
516 |
(5,346) |
Net cash used in investing
activities |
(319,653) |
(351,277) |
|
|
|
Financing activities: |
|
|
Proceeds from borrowings on asset-based
revolving credit facility |
42,400 |
548,700 |
Payments on asset-based revolving credit
facility |
(398,400) |
(871,500) |
Proceeds from the issuance of long-term
debt |
795,963 |
-- |
Payment of debt issuance costs |
(9,942) |
-- |
Principal payments on debt and capital
leases |
(1,443) |
(108,527) |
Repurchases of common stock |
(976,632) |
-- |
Excess tax benefit from stock options
exercised |
22,985 |
18,587 |
Net proceeds from issuance of common
stock |
57,562 |
63,116 |
Net cash used in financing
activities |
(467,507) |
(349,624) |
Net increase in cash and cash
equivalents |
331,831 |
2,786 |
Cash and cash equivalents at beginning of
period |
29,721 |
26,935 |
Cash and cash equivalents at end of
period |
$ 361,552 |
$ 29,721 |
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
Income taxes paid |
$ 252,769 |
$ 154,146 |
Interest paid, net of capitalized
interest |
13,350 |
31,211 |
|
|
|
Note: The cash flow
statement for the year ended December 31, 2010, has been derived
from the audited consolidated financial statements at that date,
but does not include all of the information and footnotes required
by accounting principles generally accepted in the United States
for complete financial statements. Certain prior period
amounts have been reclassified to conform to current period
presentation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
SELECTED FINANCIAL
INFORMATION |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended |
|
|
|
December
31, |
(In thousands, except adjusted
debt to adjusted EBITDAR ratio) |
2011 |
2010 |
Debt |
$ 797,574 |
$ 358,704 |
Add: Letters of credit |
59,917 |
71,206 |
Discount on senior notes |
3,683 |
-- |
Rent times six |
1,385,382 |
1,361,274 |
Adjusted debt |
$ 2,246,556 |
$ 1,791,184 |
Adjusted net income (1) |
$ 522,027 |
$ 433,058 |
Add: Interest expense |
28,165 |
39,273 |
Taxes (2) |
316,811 |
265,576 |
Adjusted EBIT |
867,003 |
737,907 |
Add: Depreciation and
amortization |
165,880 |
161,442 |
Rent expense |
230,897 |
226,879 |
Share-based compensation
expense |
20,579 |
14,947 |
Adjusted EBITDAR |
$ 1,284,359 |
$ 1,141,175 |
Adjusted debt to adjusted
EBITDAR |
1.75 |
1.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended December 31, |
|
|
|
2011 |
2010 |
Selected Balance Sheet
Ratios: |
|
|
Inventory turnover (3) |
1.5 |
1.4 |
Inventory turnover, net of
payables (4) |
3.4 |
2.5 |
Average inventory per store (in
thousands) (5) |
$ 531 |
$ 567 |
Accounts payable to inventory
(6) |
64.4% |
44.3% |
Debt-to-capital (7) |
21.9% |
10.1% |
Return on equity (8) |
17.4% |
14.4% |
Return on assets (9) |
9.7% |
8.7% |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
For the Year
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
Selected Financial Information (in
thousands): |
|
|
|
|
Capital expenditures |
$ 85,008 |
$ 88,956 |
$ 328,319 |
$ 365,419 |
Free cash flow (10) |
$ 193,834 |
$ 22,168 |
$ 790,672 |
$ 338,268 |
Depreciation and amortization |
$ 43,139 |
$ 40,711 |
$ 165,880 |
$ 161,442 |
Interest expense |
$ 9,459 |
$ 7,492 |
$ 28,165 |
$ 39,273 |
Lease and rental expense |
$ 58,743 |
$ 56,967 |
$ 230,897 |
$ 226,879 |
|
|
|
|
|
Store and Team Member
Information: |
|
|
|
|
|
For the Three Months
Ended |
For the Year
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
Beginning store count |
3,707 |
3,536 |
3,570 |
3,421 |
New stores opened |
34 |
35 |
183 |
156 |
Stores closed |
(1) |
(1) |
(13) |
(7) |
Ending store count |
3,740 |
3,570 |
3,740 |
3,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
For the Year
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
Team members |
49,324 |
46,858 |
49,324 |
46,858 |
Square footage (in thousands) |
26,530 |
25,315 |
26,530 |
25,315 |
Sales per weighted-average store (in
thousands) (11) |
$ 369 |
$ 365 |
$ 1,566 |
$ 1,527 |
Sales per weighted-average square foot
(12) |
$ 52.04 |
$ 51.44 |
$ 220.69 |
$ 215.58 |
|
|
|
|
|
(1) Amount for the year ended
December 31, 2011, excludes charges related to the write off of the
balance of debt issuance costs related to the Company's previous
credit facility in the amount of $22 million ($13 million, net of
tax) and the termination of the Company's interest rate swap
agreements in the amount of $4 million ($3 million, net of tax),
and the former CSK officer clawback in the amount of $3 million ($2
million, net of tax). Amount for the year ended December 31,
2010, excludes the previously disclosed charges related to the CSK
DOJ investigation in the amount of $21 million and the previously
disclosed nonrecurring, non-operating gain related to the
settlement of a CSK note receivable in the amount of $12 million
($7 million, net of tax). |
(2) Amount for the year ended
December 31, 2011, excludes the tax impact of the write off of the
balance of debt issuance costs related to the Company's previous
credit facility, the termination of the Company's interest rate
swap agreements and the former CSK officer clawback. Amount
for the year ended December 31, 2010 excludes the tax impact of the
previously disclosed nonrecurring, non-operating gain related to
the settlement of a CSK note receivable. |
(3) Calculated as cost of sales
for the last 12 months divided by average inventory. Average
inventory is calculated as the average of inventory for the
trailing four quarters used in determining the denominator. |
(4) Calculated as cost of sales
for the last 12 months divided by average net
inventory. Average net inventory is calculated as the average
of inventory less accounts payable for the trailing four quarters
used in determining the denominator. |
(5) Calculated as inventory
divided by store count at the end of the reported period. |
(6) Calculated as accounts
payable divided by inventory. |
(7) Calculated as the sum of
long-term debt and current portion of long-term debt, divided by
the sum of long-term debt, current portion of long-term debt and
shareholders' equity. |
(8) Calculated as the last 12
months adjusted net income, as defined in footnote (1), divided by
average shareholders' equity. Average shareholders' equity is
calculated as the average of shareholders' equity for the trailing
four quarters used in determining the denominator. |
(9) Calculated as the last 12
months adjusted net income, as defined in footnote (1), divided by
average total assets. Average total assets are calculated as
the average total assets for the trailing four quarters used in
determining the denominator. |
(10) Calculated as net cash flows
provided by operating activities less capital expenditures for the
period. |
(11) Calculated as total sales
less jobber sales, divided by weighted-average
stores. Weighted-average sales per store are weighted to
consider the approximate dates of store openings or
expansions. |
(12) Calculated as total sales
less jobber sales, divided by weighted-average square
feet. Weighted-average sales per square foot are weighted to
consider the approximate dates of store openings or
expansions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL INFORMATION |
(Unaudited) |
|
For the Three
Months Ended December 31, |
For the Year
Ended December 31, |
(In thousands, except per share data) |
2011 |
2010 |
2011 |
2010 |
GAAP operating income |
$ 206,911 |
14.9 % |
$ 164,136 |
12.5% |
$ 866,766 |
15.0% |
$ 712,776 |
13.2% |
Former CSK officer clawback |
(2,798) |
(0.2) % |
-- |
-- % |
(2,798) |
(0.1) % |
-- |
-- % |
Legacy CSK DOJ investigation charge |
-- |
-- % |
-- |
--% |
-- |
-- % |
20,900 |
0.4% |
Non-GAAP adjusted operating income |
$ 204,113 |
14.7 % |
$ 164,136 |
12.5% |
$ 863,968 |
14.9% |
$ 733,676 |
13.6% |
|
|
|
|
|
|
|
|
|
GAAP net income |
122,988 |
8.8 % |
$ 105,760 |
8.1% |
$ 507,673 |
8.8% |
$ 419,373 |
7.8% |
Write-off of asset-based revolving credit
facility debt issuance costs, net of tax |
-- |
-- % |
-- |
-- % |
13,458 |
0.2% |
-- |
-- % |
Termination of interest rate swap
agreements, net of tax |
-- |
-- % |
-- |
-- % |
2,637 |
-- % |
-- |
-- % |
Former CSK officer clawback, net of
tax |
(1,741) |
(0.1)% |
-- |
-- % |
(1,741) |
-- % |
-- |
-- % |
Legacy CSK DOJ investigation charge |
-- |
-- % |
-- |
-- % |
-- |
-- % |
20,900 |
0.4% |
Gain on settlement of note receivable,
net of tax |
-- |
-- % |
(7,215) |
(0.6)% |
-- |
-- % |
(7,215) |
(0.2)% |
Non-GAAP adjusted net income |
$ 121,247 |
8.7 % |
$ 98,545 |
7.5% |
$ 522,027 |
9.0% |
$ 433,058 |
8.0% |
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share |
$ 0.94 |
|
$ 0.74 |
|
$ 3.71 |
|
$ 2.95 |
|
Write-off of asset-based revolving credit
facility debt issuance costs, net of tax |
-- |
|
-- |
|
0.09 |
|
-- |
|
Termination of interest rate swap
agreements, net of tax |
-- |
|
-- |
|
0.02 |
|
-- |
|
Former CSK officer clawback, net of
tax |
(0.01) |
|
-- |
|
(0.01) |
|
-- |
|
Legacy CSK DOJ investigation charge |
-- |
|
-- |
|
-- |
|
0.15 |
|
Gain on settlement of note receivable,
net of tax |
-- |
|
(0.05) |
|
-- |
|
(0.05) |
|
Non-GAAP adjusted diluted earnings per
share |
$ 0.93 |
|
$ 0.69 |
|
$ 3.81 |
|
$ 3.05 |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding –
assuming dilution |
130,405 |
|
143,203 |
|
136,983 |
|
141,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended |
|
|
|
|
|
|
|
December
31, |
(In thousands, except adjusted
debt to adjusted EBITDAR ratio) |
2011 |
2010 |
GAAP debt |
$ 797,574 |
$ 358,704 |
Add: Letters of credit |
59,917 |
71,206 |
Discount on senior notes |
3,683 |
-- |
Rent times six |
1,385,382 |
1,361,274 |
Non-GAAP adjusted debt |
$2,246,556 |
$ 1,791,184 |
|
|
|
|
|
|
|
|
|
GAAP net income |
$ 507,673 |
$ 419,373 |
Write-off of asset-based
revolving credit facility debt issuance costs, net of tax |
13,458 |
-- |
Termination of interest rate
swap agreements, net of tax |
2,637 |
-- |
Former CSK officer clawback,
net of tax |
(1,741) |
-- |
Legacy CSK DOJ investigation
charge |
-- |
20,900 |
Gain on settlement of note
receivable, net of tax |
-- |
(7,215) |
Non-GAAP adjusted net income |
522,027 |
433,058 |
Add: Interest expense |
28,165 |
39,273 |
Taxes, net of impact of debt
issuance costs write off, swap agreements termination, former CSK
officer clawback and gain on settlement of note receivable |
316,811 |
265,576 |
Adjusted EBIT |
867,003 |
737,907 |
|
|
|
|
|
|
|
|
|
Add: Depreciation and
amortization |
165,880 |
161,442 |
Rent expense |
230,897 |
226,879 |
Share-based compensation
expense |
|
20,579 |
14,947 |
Adjusted EBITDAR |
$1,284,359 |
$ 1,141,175 |
Adjusted debt to adjusted
EBITDAR |
1.75 |
1.57 |
|
|
|
|
|
|
|
|
|
CONTACT: Investor & Media Contact
Mark Merz (417) 829-5878
O Reilly Automotive (NASDAQ:ORLY)
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